Introducing Friend.tech: A Guide to the Pros and Cons
In August 2023, Base’s new L2 network was launched by Friend.tech, with backing from Coinbase. This decentralized social network allows users to tokenize themselves and buy/sell their “Keys.” Here’s a comprehensive guide to the pros and cons of Friend.tech.
What is Friend.tech?
Friend.tech is a decentralized social network where creators can offer “Keys” to their followers. Formerly known as “Shares,” these Keys allow direct communication between creators and holders. With an influx of famous personalities from sports, OnlyFans, and Crypto Twitter, the platform gained popularity quickly.
How Does it Work?
To join Friend.tech, you need an invitation code. Currently, you can easily join using your phone without installing any app from the Apple Store or Play Store. The value of a Key increases with the number of followers, providing potential profits for holders if their Keys appreciate in value. Keys grant access to gated chat rooms and exclusive content.
The Numbers and Funding
Daily transactions on Friend.tech peaked at over 300,000 during its first two weeks but have since stabilized around 120,000. The platform made $25 million within the same period. Paradigm provided seed funding, resulting in a $50 million valuation for the platform.
The Team Behind Friend.tech
The team behind Friend.tech consists of oxRacerAlt and Shrimppepe, known primarily through their Twitter handles. However, they have been associated with questionable projects in the past that raised concerns about trustworthiness.
Concerns About Privacy and Security
There are two main concerns regarding Friend.tech: privacy and security. To protect your privacy, it is advisable to disconnect your X account, as it is a prime target for hackers. Additionally, the API of Friend.tech includes a reference to a previously problematic project by the founders, raising further security concerns.
The Biggest Danger: SIM Swapping
A significant danger for Friend.tech users, especially Americans, is SIM swapping. Hackers can easily gain control over your phone number and change passwords for accounts linked to 2-factor authentication. This can result in the draining of wallets and loss of funds.
Hot Take: Proceed with Caution When Using Friend.tech
While Friend.tech offers an innovative concept and potential earnings for creators, there are several concerns that users should consider before joining. The sustainability of Key pricing is uncertain, and there are valid privacy and security concerns. The most serious risk is SIM swapping, which has already resulted in significant losses for some users. Exercise caution and carefully evaluate the risks before jumping on the Friend.tech bandwagon.
Disclaimer: The information provided is not financial advice and should be used for educational and informational purposes only. Investing in cryptocurrencies carries high risks, so please conduct thorough research and exercise caution when making investment decisions.
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